CANADA ENERGY ANNOUNCES 2008 CAPITAL BUDGET
January 29, 2008
VANCOUVER, BRITISH COLUMBIA--(Marketwire - Jan. 29, 2008) - Canada Energy Partners Inc. ("Canada Energy" or the "Company") (TSX VENTURE:CE) is pleased to announce its 2008 capital budget. The budget includes approximately $9 million for development of the Peace River CBM Project (the "Project") and $4 million for exploration on the Company's lands in northeast British Columbia.
The Peace River CBM Project budget includes construction and installation of gas plant, compressor station, gathering lines, high pressure pipeline, pipeline connection and a meter station to connect into the existing Spectra Energy pipeline. The budget also includes drilling and completion of 5 new production wells, putting a total of 8 wells into production and completion of up to 3 water disposal wells. The initiation of gas sales from the Project is expected in the fourth quarter of 2008. Hudson's Hope Gas Ltd., a subsidiary of GeoMet Inc. (NASDAQ:GMET), the Operator and 50% working interest owner of the Project, announced today its commitment to $9 million of expenditures on the Project in addition to the Company's expenditures (the total 2008 capital budget for the Project is $18 million).
The exploration budget of $4 million includes drilling of up to two wells on the Company's Monias Prospect, one well on the Moberly Prospect and one well on the lands covered by Peace River CBM Project. The Monias wells and the well on the lands covered by Peace River CBM Project will be testing the Cretaceous zones; the Moberly well will test the Cretaceous and Triassic zones. The Monias wells are in close proximity to an acid gas gathering system and the Company has a gas transportation agreement in place. The first Monias well is scheduled to be drilled in March 2008. The exploration budget is fully funded with the proceeds from the Company's December 2007 financing.
On behalf of the Board of Directors of Canada Energy Partners Inc.
John Proust, Director
Forward-looking statements: This document may contain statements about expected or anticipated future events and financial results that are forward-looking in nature and, as a result, are subject to certain risks and uncertainties, such as general economic, market and business conditions, the regulatory process and actions, technical issues, new legislation, competitive and general economic factors and conditions, the uncertainties resulting from potential delays or changes in plans, the occurrence of unexpected events, and the Company's capability to execute and implement its future plans. Actual results may differ materially from those projected by management. For such statements, we claim the safe harbour for forward-looking statements within the meaning of the Private Securities Legislation Act of 1995.
The TSX Venture Exchange does not accept responsibility for the adequacy or the accuracy of this release.
Canada Energy Partners Inc.
Fax: (604) 488-0319